Used Husband’s 401(k) To Flip Houses and They Didn’t Sell
The Ramsey Show Highlights
Ramsey Network
4.5 • 839 Ratings
🗓️ 21 June 2024
⏱️ 8 minutes
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| 0:00.0 | Brought to you by the Every Dollar app. |
| 0:04.2 | Start budgeting for free today. |
| 0:06.6 | So I was trying to help my husband about, I guess, a year and a half ago, September |
| 0:12.5 | 2023 basically. |
| 0:14.4 | I asked if I could borrow from his 401 so that I could, you know, invest in flips and flip |
| 0:20.7 | them and then help pay down the |
| 0:22.5 | mortgage so he could retire earlier. The first house did not sell and I was nearing the end of the |
| 0:28.0 | loan, a high money loan, so I had to refinance. We refinance that. So now we're stuck with that |
| 0:33.7 | house, but the renter is paying for that. It's covering the expenses. I did it again with the hopes of, you know, the same goal. And now I'm stuck with a house |
| 0:42.5 | that is nearing its maturity for the hard money loan to be paid. So I'm trying to figure out |
| 0:47.8 | whether I should refinance and go because I'm going to suffer a loss. I can't sell this |
| 0:53.5 | for some reason. |
| 0:54.3 | It's the interest rates in the area that we're in. |
| 0:58.3 | So I don't know if I should sell it at a loss or refinance it into a hard, |
| 1:03.5 | I mean, to a conventional loan again so that I can pay back the hard money lender |
| 1:07.4 | and just keep the house and rent it for a while to recoup my money back |
| 1:11.5 | and try to resell it later. |
| 1:12.7 | I think we need to, we got a sunk cost fallacy here, and you keep digging yourself into a hole, |
| 1:17.2 | and you touch the hot stove, and then you did it again, and so I think we need to get out |
| 1:21.3 | of the real estate game entirely. |
| 1:23.5 | I don't know that I would, what's the loss on this that you would take it would be at least |
| 1:30.4 | 12,000 okay I'm getting out do you guys have this money do you have it do you have any money in the |
... |
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